Gilmore Corporation Is Investigating the Possibility of Adopting a Lean

question 122

Multiple Choice

Gilmore Corporation is investigating the possibility of adopting a lean thinking philosophy in its manufacturing facilities. The plant manager has done a cost-benefit analysis and has found that the costs of the lean production program exceed the benefits by $115,000. You analyze the situation and make some adjustments to the cost estimates. After doing your analysis, you find that costs still outweigh benefits by less than 5%. Which might be a sound course of action?

• A)Consider dropping the plan.
• B)Look for ways to lessen costs.
• C)Re-evaluate the value of benefits.
• D)All of the above should be considered.

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Definitions:

FICA Tax

A U.S. federal payroll tax that funds Social Security and Medicare, requiring contributions from both employers and employees.

FUTA Tax

A federal tax in the United States imposed on employers to fund state workforce agencies and unemployment insurance.

Net Pay

Net pay is the amount of money an employee takes home after all deductions, such as taxes and retirement contributions, have been subtracted from the gross salary.

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A government program that provides financial assistance to eligible workers who are unemployed through no fault of their own, offering temporary income support.